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LTX-Credence to Buy Multitest, Everett Charless Technologies for $93.5M in Cash, Debt, and Notes

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LTX-Credence Corporation (Nasdaq: LTXC) today announced an important step in the evolution of the semiconductor test cell with an agreement to acquire the Multitest and Everett Charles Technologies (ECT) businesses of Dover Corporation (NYSE: DOV).

LTX-Credence and Dover Printing & Identification, Inc., a subsidiary of Dover Corporation (Dover), have signed a definitive agreement for the acquisition by LTX-Credence of the assets and stock exclusively and primarily related to the Multitest and ECT businesses for a purchase price of $93.5 million, of which $73.5 million will be paid in cash through a combination of existing cash-on-hand and bank debt and $20.0 million will be paid by the issuance of a promissory note by LTX Credence to Dover. The purchase price is subject to customary adjustments. The deal is expected to close by December 31, 2013, pending satisfaction of customary closing conditions, including with respect to required regulatory filings. We anticipate that this acquisition will create a combined company with trailing 12-month pro forma revenues of approximately $420.0 million and we expect the acquisition to be immediately accretive to LTX-Credence's earnings.

The combination of LTX-Credence, Multitest and ECT will provide LTX-Credence with the opportunity to serve a greater share of the semiconductor test cell, while increasing access to the electronics manufacturing industry. The combined company will be the only provider of comprehensive test solutions and services for the semiconductor and printed circuit board markets—redefining the test cell by assembling best-in-class technology from three market-leading companies into new, innovative solutions.

The acquisition is intended to:

* Expand LTX-Credence's share of the semiconductor test cell; * Increase the size of the Company's total addressable market from $2.5 billion to approximately $5.0 billion; * Increase efficiency, accelerate the time to high-volume production and reduce costs within the wafer sort and final test cells; * Diversify into vertical markets, such as PCB (Printed Circuit Board) and PCBA (Printed Circuit Board Assembly) testing; * Improve business cycle performance with an annual recurring revenue stream of approximately $240.0 million; and * Deliver approximately $15.0 million in expected synergies, leading to enhanced cash generation and profitability.

Posted-In: News M&A


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